Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

NOTE 14. STOCK-BASED COMPENSATION

We recognize stock-based compensation expense based on the fair value of awards issued. Stock-based compensation for the three months and six months ended September 30, 2011 and 2010 is as follows (in thousands):

	September 30,
	2011		2010
Three months	$	3,228	$	2,075
Nine months		9,362		5,895

Stock Options

Stock option awards are granted with an exercise price equal to the market price of our stock at the date of grant, a four-year vesting schedule, and a term of 10 years, except as noted below.

During the third quarter of 2011, we granted non-qualified stock options to our Chief Executive Officer that will vest based on the achievement of certain stock price targets. The stock-based compensation cost and derived service periods for these stock options were estimated using the Monte Carlo simulation method utilizing a volatility of 61.6% and a risk-free rate of 2.4%. The weighted-average fair value of these awards is $2.92 per share and the derived service periods range from approximately one and one-half years to approximately two years. As of September 30, 2011, no part of the grant had been achieved. If the targets are not met, the non-qualified stock options will expire on the third anniversary of the grant date.

A summary of our stock option activity for the nine months ended September 30, 2011 is as follows (in thousands):

	Shares
Options outstanding at December 31, 2010		5,709
Options granted		1,484
Options exercised		(198	)
Options forfeited		(483	)
Options expired		(260	)
Options outstanding at September 30, 2011		6,252

Restricted Stock Units

A summary of our non-vested Restricted Stock Units activity for the nine months ended September 30, 2011 is as follows (in thousands):

	Shares
Balance at December 31, 2010		447
RSUs granted		512
RSUs vested		(123	)
RSUs forfeited		(86	)
Balance at September 30, 2011		750